- How Is Debt Divided During a Divorce?
During a divorce, debt is handled the same as assets. This means, primarily, that courts will try to follow two rules. First, courts will distribute debt based on its marital and pre-marital status. Debt that someone held before the marriage will, in general, remain entirely with that individual. Debt the couple accrued during the marriage… read more…
- I Have $2.2 Million Invested With My Advisor Who Charges a 1% Fee. Am I Paying Too Much?
When it comes to advisor fees, there are two numbers to keep in mind: 1% and 0.02%. The first is the average fee that financial advisors tend to charge. If you are looking for comprehensive financial management, in general you should expect to pay about 1%. The second is a representative fee for a well-indexed… read more…
- Ask an Advisor: Should I Cash Out My $200k in Annuities and Buy a Rental Property That Will Bring in $1,500 Per Month?
I’ve already retired and I’ve got $200,000 in annuities and I’m 60 years old. Should I get a monthly income from my annuities (which will be about $1,000 or withdraw all of the annuities, pay the 30% tax and invest in a rental property and use that money — approximately $1,500 — for an income?… read more…
- Gift Tax Calculator: Do You Owe Gift Taxes?
Enter the value of gifts given to up to three people during this tax year. Also enter your total cumulative lifetime gifts given in previous years, which count toward your lifetime gift tax exclusion and may affect your taxes due in this and future years. Gift Tax Calculator Gift Tax Calculator Gift 1 Amount: $… read more…
- Ask an Advisor: I Plan to Retire Abroad But Need Another $300k-$400k. How Can I Get There?
I’m divorced three times, retired from the military and plan to retire from civil service in about four years at 64 years old. I have $150,000 in a thrift savings plan. I’m saving $900 monthly in this account and would be happy if it grew to $300,000 to $400,000. I’m also starting to put $600… read more…
- Ask an Advisor: I’m 44 With $1 Million in Retirement Savings. I Want a Backdoor Roth IRA, But I Don’t Know Where to Start
I’m 44 with $1 million in my 401(k), IRA and Roth IRA. Since my total household is above the threshold for investing in a Roth IRA, I have been considering employing the backdoor Roth IRA tactics. I left $700,000 in a 401(k) at my old employer. I am trying to strategize on “distributing” the old 401(k) balance… read more…
- How Permanent Alimony Works During Retirement in Florida
In July, 2023, Florida eliminated permanent alimony as a category from its divorce statute. Going forward, alimony payments in Florida will be based on set terms. Payments will expire either after a specific amount of time has passed or once specific conditions have been met. This means that spouses can now plan for an end to… read more…
- How Child Support Is Calculated in California
Like all states, California uses a formula to calculate the exact amount of child support that a parent owes. This formula result is then applied and modified by a family court judge, who produces a final child support order. Family courts have broad discretion to modify child support based on their impression of the child’s… read more…
- Ask an Advisor: I’m 60 With $65k in Pension Income and $100k in My IRA. Is a Roth Conversion Worth It?
I’m 60 and I would like to convert some money from my regular IRA to a Roth. I’m aware that the earnings are subject to penalty before five years but I won’t need that money until at least age 70. Is it advisable to do so? My annual income from a pension is $65,000 and… read more…
- How to Find a Financial Advisor Specializing in Aged Care
For seniors and retirees, no matter what your financial situation, finding someone who can help manage your money is important. You need someone who can build a financial plan around portfolio income, rather than income and work. Retirees with significant assets will need help with wealth management, while those who live on a budget need… read more…
- Ask an Advisor: My Advisor Relies on a Sister Company to Manage My Account and Never Reaches Out to Me. Is This How He Should Act?
I’ve had a fiduciary financial advisor for over five years. He recommended a type of sister company working with him to handle my account. I never hear from him unless I email a question or ask to invest in a CD or stock. Is this the way a financial advisor should act? He lets the… read more…
- Ask an Advisor: Can I Tell My Advisor to Mimic His Portfolio? We’ll Both ‘Smell Like a Rose or Go Down Like the Titanic’
While I can understand that a financial advisor’s life is private, is there a “proper way” to ask your advisor to invest your money in the same things he or she invests in? My feeling is that either both you and the advisor will come out smelling like a rose … or both of you are… read more…
- Ask an Advisor: My RMDs Start Soon So I’m Converting $700k to a Roth, But I’m Getting Conflicting Info About Having to Wait Five Years
I’m 68 and recently retired and have about $1.4 million in accounts intended for retirement ($1.2 million in a Traditional IRA and $110K in a Roth). I also am receiving about $47,000 annually in Social Security benefits. My RMDs are scheduled to start in 2027, and as a result, my financial advisor and I are… read more…
- How to Build a Financial Planning Training Program
As financial markets grow in complexity and the demand for tailored financial advice continues to escalate in the U.S., a variety of training programs can provide the necessary education for both aspiring and seasoned financial advisors. These lessons could span from investment strategies to tax planning and retirement, as well as estate management and other… read more…
- Ask an Advisor: Will $25k in Annuity Payments Cut My $50k RMD in Half?
I’m in my mid-70s and I’m considering purchasing an immediate single premium lifetime annuity for myself using a portion of my regular IRA account as the source of the premium I would be paying. Having been notified of my 2024 RMD based on the Dec. 31, 2023, balance (assume the RMD is $50,000), do the… read more…
- Ask an Advisor: How Do I Structure My Withdrawals to Keep My Healthcare Subsidies? I’m 60 With $2.4 Million
At the age of 60, I recently entered retirement after being a business owner. I’ve been securing health insurance through the marketplace since its inception. Currently, my income is derived solely from withdrawing money from my taxable portfolio, comprising reported dividends and capital gains totaling less than $60,000 annually. An advantageous outcome of this approach… read more…
- Ask an Advisor: If I Delay My First RMD, Can I Count It as Income for the Previous Year?
If I turn 73 in 2025 and take out my first RMD before Dec. 31, 2025, it would be 2025 income. If I wait until the April 1, 2026 deadline for RMDs, would the withdrawal still count as 2025 income? I still have to take another RMD before Dec. 31, 2026, which would be 2026… read more…
- 5 Reasons to Get a Financial Advisor in Your 20s
Why You Should Get a Financial Advisor in Your 20s Financial planning is a crucial aspect of life, irrespective of one’s age or economic status. It necessitates making educated decisions about your finances to effectively pursue your life ambitions. For many, this process might seem quite difficult to figure out. This is where the role… read more…
- 7 Major Financial Checkpoints: How Do You Stack Up?
When it comes to financial plans, your assets, cash flows and debts all influence the path toward your goals. While talking to a financial advisor can help you establish a comprehensive plan to reach your goals, you can use basic rules of thumb to gauge your current financial position. 1. Housing Ratio (Monthly housing costs)/(Monthly… read more…
- I Have $1.7M Invested With My Advisor and I Pay a 1% Fee. Am I Paying Too Much?
When it comes to financial advice, what you pay can vary based on what you get. An advisor who simply sets you up with a passive S&P 500 index fund might not be worth a 1% fee, while an advisor who helps you manage taxes and cash flow, plan for retirement and save for your… read more…
- Ask an Advisor: If I Move From New York City to Florida, Can I Afford to Retire?
I’m 54 and would like to retire next year. I intend on moving out of expensive New York City to Florida where I will purchase a home outright with cash for $600,000 to $650,000 (financed from the sale of my home last year). Additionally, I have a 457(b) plan with a $1.4 million balance and… read more…
- Ask an Advisor: I’m 68 With $1.4 Million in Savings and Another $1 Million in Stocks. Can I Retire at 70?
I‘m a 68-year-old single man in good health and I plan to work until I am 70. As of now, I have $400,000 in CDs, about $1 million in stocks, and about $1 million in my 401(k) and IRA combined. When I retire, I will get about $4,200 in Social Security and I have $4,000… read more…
- Ask an Advisor: Can I Retire at 55? I Have $760k, Plus a Rental Property, Pension and Disability Benefits
I’m a 43-year-old woman with a partner (not legally married) and no kids. I currently have $500,000 in a 401(k) and contribute up to the pre-tax limit every year, plus $10,000 in non-deductible contributions. I have $50,000 in an IRA and bonds, $100,000 in stocks and $100,000 in savings. I own a rental property that… read more…
- Ask an Advisor: We’re in Our 70s With Nearly $3.5 Million Invested ‘Solely in Stocks.’ Should We Switch to a 60/40 Portfolio?
I am 73 and my wife is 70 with one son. We have $235,000 in a savings account and we each have $250,000 in Roth IRAs. We also have $1.675 million in a brokerage account and $1.55 million in a 401(k). Everything other than the two Roths are invested solely in stocks and the two… read more…
- Ask an Advisor: We Have $1.2 Million in IRAs and Only $10k in Cash. Should We Use IRA Withdrawals to Build Our Emergency Fund?
I am 64 ½ and have been retired for just over a year. I am receiving Social Security benefits, a bit early, but have not touched my nest egg except to withdraw $10,000, which I placed in a high-interest savings account as an emergency fund. Would it be wise to use part of that cash… read more…